<span>The correct answer is d. management does not own a large share of firm stock and pursues its own interests rather than those of shareholders.When management pursues its own interests, there is a conflict with the interest of the shareholders who hired the management in the first place.</span>
Answer:
$5.73(Approx).
Explanation:
Given:
= 0.32
Growth rate = 25% = 0.25
Number of year = 4
Growth rate after 4 year = 3% = 0.03
Required rate of return = 15% = 0.15
Computation of divined in 4 year:

Price of stock after year 4 = [Divined in 4 year × (1 + new growth)] /[Required rate of return - Growth rate after 4 year ]
Price of stock after year 4 = [0.78125 × (1+0.03)] / [0.15 - 0.03]
Price of stock after year 4 = [0.8046875] / [0.12]
Price of stock after year 4 = $6.70572917
Present value = Future value / 
Present value = $6.70572917 / 
Present value = $6.70572917 / 
$5.73(Approx).
I believe the answer is false
Answer:
balance in the Prepaid Rent account as of April 30 is $10800
Explanation:
given data
rent office = $5,400 per month
rent paid = 6 month i.e January 1 to June 30
to find out
balance in the Prepaid Rent account as of April 30
solution
we know here that Period Expired till April 30 = 4 months ( January 1 to April 30)
and
so Period Balance = 2 Months ( May 1 to June 30 )
so Prepaid Rent is = Balance Period × Rent per month
Prepaid Rent = 2 × 5,400
Prepaid Rent = $10800
so balance in the Prepaid Rent account as of April 30 is $10800
Answer:
Cost of equity = 8.22%
Explanation:
Cost of equity = Dividend per share /current market value + growth rate of dividend
Cost of equity = 2/90 + 6%
Cost of equity = 0.0222 + 6%
Cost of equity =0.0222 + 0.06
Cost of equity = 0.0822
Cost of equity = 8.22%